Schumer: Inaction 'risks a depression'

Sen. Charles Schumer said Sunday that Congress had to act quickly on the economic recovery package in recent days because "to do nothing risks a depression."

In an interview on "This Week With George Stephanopoulos," Schumer (D-N.Y.) said it’s “easy to say no” to the recovery package, but “we have the worst economy we’ve had since the Great Depression, half a million people more losing jobs every month. The economy is hurtling southward."

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Schumer said the “big, strong, bold” economic recovery package will create 3 million to 4 million jobs, put money in the hands of the middle class and create infrastructure projects that “not only puts people to work but leaves something after, God willing, we get out of this.”

“To do nothing risks a depression,” he said.

Citing economists, Schumer said the nation was close to facing a “deflationary spiral.”

“And once you get into that spiral deeply, you don’t know how to get out,” he said. “That’s what the Great Depression was. To a lesser extent, that’s what happened in Japan for 10 years. And we need to get out of it. And this is a jolt to the economy. It’s a strong jolt.”

Republicans on the show disagreed.

Sen. Lindsey Graham (R-S.C.) said he “wanted to do something” but had significant issues with the economic package.

“I think we do need a stimulus package with a focus, and that’s create jobs in the near term,” he said. “Eleven percent of the appropriated money in this bill hits in 2009. Most of the money in this bill is in entitlement spending that’s not going to create jobs.”

Rep. Peter King (R-N.Y.) complained that “no Republican was allowed to take part in the process.”

But Schumer said Democrats compromised on the legislation.

"We had a lot of people that said, 'Take this out, take that out,'" Schumer said.

Most of their complaints were addressed, Schumer said, "and they still voted against the bill. ... We don’t know what more to do in terms of bipartisanship.”

Graham responded, “If this is going to be bipartisanship, the country is screwed.”

“I know bipartisanship when I see it. I’ve participated in it. I’ve gone back home and gotten primary opponents because I wanted to be bipartisan.

“There’s nothing about this process that’s been bipartisan,” he said. “This is not change we can believe in.”